ENXTPA:FNAC

Stock Analysis Report

Executive Summary

Fnac Darty SA operates as an omni-channel retailer of cultural and leisure goods, consumer electronics, and household appliances in France, Switzerland, Iberian Peninsula, and Benelux.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Fnac Darty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FNAC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.2%

FNAC

4.5%

FR Specialty Retail

10.6%

FR Market


1 Year Return

-64.7%

FNAC

-58.8%

FR Specialty Retail

-18.9%

FR Market

Return vs Industry: FNAC underperformed the French Specialty Retail industry which returned -58.8% over the past year.

Return vs Market: FNAC underperformed the French Market which returned -18.9% over the past year.


Shareholder returns

FNACIndustryMarket
7 Day13.2%4.5%10.6%
30 Day-42.0%-34.0%-17.6%
90 Day-54.8%-47.6%-25.6%
1 Year-64.7%-64.7%-58.5%-58.8%-16.1%-18.9%
3 Year-64.5%-64.5%-59.0%-60.1%0.2%-9.2%
5 Year-59.1%-59.1%-44.3%-46.1%11.2%-6.5%

Price Volatility Vs. Market

How volatile is Fnac Darty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fnac Darty undervalued compared to its fair value and its price relative to the market?

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FNAC (€23.84) is trading below our estimate of fair value (€29.96)

Significantly Below Fair Value: FNAC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FNAC is good value based on its PE Ratio (6.1x) compared to the Specialty Retail industry average (6.1x).

PE vs Market: FNAC is good value based on its PE Ratio (6.1x) compared to the French market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: FNAC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FNAC is overvalued based on its PB Ratio (0.5x) compared to the FR Specialty Retail industry average (0.5x).


Next Steps

Future Growth

How is Fnac Darty forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNAC's forecast earnings growth (13.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: FNAC's earnings (13.7% per year) are forecast to grow faster than the French market (12.3% per year).

High Growth Earnings: FNAC's earnings are forecast to grow, but not significantly.

Revenue vs Market: FNAC's revenue (2.7% per year) is forecast to grow slower than the French market (3.6% per year).

High Growth Revenue: FNAC's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FNAC's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Fnac Darty performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNAC has a large one-off loss of €56.0M impacting its December 31 2019 financial results.

Growing Profit Margin: FNAC's current net profit margins (1.6%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: FNAC's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: FNAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FNAC had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (-22.9%).


Return on Equity

High ROE: FNAC's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Fnac Darty's financial position?


Financial Position Analysis

Short Term Liabilities: FNAC's short term assets (€2.9B) do not cover its short term liabilities (€3.2B).

Long Term Liabilities: FNAC's short term assets (€2.9B) exceed its long term liabilities (€2.3B).


Debt to Equity History and Analysis

Debt Level: FNAC's debt to equity ratio (72.5%) is considered high.

Reducing Debt: FNAC's debt to equity ratio has increased from 0% to 72.5% over the past 5 years.

Debt Coverage: FNAC's debt is well covered by operating cash flow (31.7%).

Interest Coverage: FNAC's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: FNAC has a high level of physical assets or inventory.

Debt Coverage by Assets: FNAC's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Fnac Darty's current dividend yield, its reliability and sustainability?

6.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FNAC's dividend (6.29%) is higher than the bottom 25% of dividend payers in the French market (2.04%).

High Dividend: FNAC's dividend (6.29%) is low compared to the top 25% of dividend payers in the French market (6.44%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether FNAC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if FNAC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), FNAC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FNAC's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Enrique Martinez (48yo)

2.67s

Tenure

€835,662

Compensation

Mr. Enrique Martinez has been the Chief Executive Officer at Fnac Darty SA since July 17, 2017 and has been Director since May 2019. He began his career with Toys’R Us. In 1998, he joined Fnac Darty with t ...


CEO Compensation Analysis

Compensation vs Market: Enrique's total compensation ($USD921.96K) is about average for companies of similar size in the French market ($USD787.62K).

Compensation vs Earnings: Enrique's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Enrique Martinez
CEO & Director2.67yrs€835.66k0.29% 1.8m
Jean-Brieuc Le Tinier
Group Chief Financial Officerno datano datano data
Olivier Theulle
Director of Operations & Information Systems6.25yrsno datano data
Stéphanie Constand-Atellian
Director of Financing & Investor Relations3yrsno datano data
Benjamin Perret
Director of Communications & Public Affairsno datano datano data
Annabel Chaussat
Director of Marketing & e-Commerce2yrsno datano data
Frédérique Giavarini
Director of Human Resources6.17yrsno datano data
Marcos Ruao
Chief Executive Officer of Fnac Spain7.17yrsno datano data
Charles-Henri de Maleissye
Chief Executive Officer of Vanden Borre5yrsno datano data

5.0yrs

Average Tenure

47.5yo

Average Age

Experienced Management: FNAC's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Enrique Martinez
CEO & Director2.67yrs€835.66k0.29% 1.8m
Daniela Weber-Rey
Independent Director2.25yrsno data0.00094% 6.0k
Jacques Veyrat
Independent Chairman of the Board2.67yrs€225.62k0.00094% 6.0k
Nonce Paolini
Independent Director7.17yrs€31.38k0.00094% 6.0k
Antoine Gosset-Grainville
Independent Vice Chairman of the Board2.25yrs€25.54k0.00094% 6.0k
Sandrine Lagumina
Independent Director2.25yrsno data0.00094% 6.0k
Caroline Juliette Mazza
Independent Director1.83yrsno data0.00094% 6.0k
Carole Ferrand
Independent Director7.17yrs€38.07k0.00094% 6.0k
Brigitte Taittinger-Jouyet
Independent Director7.17yrs€24.68k0.00094% 6.0k
Delphine Mousseau
Independent Director2.25yrsno data0.00097% 6.2k

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: FNAC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fnac Darty SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fnac Darty SA
  • Ticker: FNAC
  • Exchange: ENXTPA
  • Founded: 195
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: €635.721m
  • Shares outstanding: 26.67m
  • Website: https://www.fnacdarty.com

Number of Employees


Location

  • Fnac Darty SA
  • 9, rue des Bateaux-Lavoirs
  • ZAC Port d’Ivry
  • Ivry-sur-Seine
  • Ile-de-France
  • 94200
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNACENXTPA (Euronext Paris)YesOrdinary SharesFREURJun 2013
FNACPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2013
GRUP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2013
0QSHLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2013
1FNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013

Biography

Fnac Darty SA operates as an omni-channel retailer of cultural and leisure goods, consumer electronics, and household appliances in France, Switzerland, Iberian Peninsula, and Benelux. The company offers consumer electronics, including desktop computers, laptops, tablets, software, printers, e-readers, telephones and office products, and accessories, as well as various connected products; cameras and photography accessories; televisions and video accessories, such as DVD players, Blu-Ray players, and other accessories; and audio items and accessories comprising MP3 players, headphones, docking stations, and related accessories. It also provides editorial products that include hard copy and digital books; music, video, and video games and games consoles; and gadgets, T-shirts, musical instruments, and others. In addition, the company offers household appliances, which comprise refrigerators/freezers, cooking equipment, dishwashers, and washing machines/dryers; and vacuum cleaners, and body care and water/air treatment appliances, as well as other products and services, including kitchen units, home and design products, games and toys, and stationery. Further, it provides warranty extension, product insurance sale, after-sale, and delivery and installation services; rental services for consumer electronics and delivery services; ticketing and gift boxes; and membership cards for the company’s loyalty programs. As of June 30, 2019, the company had a total of 804 stores, including 284 franchises. The company was formerly known as Groupe Fnac société anonyme. Fnac Darty SA was founded in 1954 and is headquartered in Ivry-sur-Seine, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:14
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.